大成食品(03999) - 2023 Q1 - 季度业绩

Performance Announcement and Financial Summary This section provides an overview of the company's unaudited consolidated financial results for the first quarter of 2023 Financial Summary DaChan Food (Asia) Ltd. announced unaudited Q1 2023 consolidated results, with operating revenue up 14.4% and profit attributable to shareholders surging 83.0% to RMB 0.010 per share Key Financial Data for Q1 2023 | Metric | Three Months Ended March 31, 2023 (RMB Thousand) | Three Months Ended March 31, 2022 (RMB Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,529,353 | 1,336,395 | 14.4 | | Gross Profit | 156,469 | 143,311 | 9.2 | | Gross Profit Margin (%) | 10.2 | 10.7 | - | | Profit Attributable to Shareholders | 10,244 | 5,599 | 83.0 | | Basic Earnings Per Share (RMB) | 0.010 | 0.006 | - | Consolidated Financial Statements This section presents the company's consolidated income statement and statement of financial position for the reporting period, detailing revenue, profit, assets, and liabilities Consolidated Income Statement For Q1 2023, the company reported RMB 1,529,353 thousand in operating revenue, RMB 156,469 thousand in gross profit, and RMB 10,244 thousand in profit attributable to shareholders, with basic EPS of RMB 0.010, all showing significant growth Key Consolidated Income Statement Data | Metric | Three Months Ended March 31, 2023 (RMB Thousand) | Three Months Ended March 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Operating Revenue | 1,529,353 | 1,336,395 | | Cost of Sales | (1,372,884) | (1,193,084) | | Gross Profit | 156,469 | 143,311 | | Operating Profit | 22,193 | 17,198 | | Profit Before Tax | 18,964 | 14,301 | | Profit for the Period | 17,180 | 10,138 | | Profit Attributable to Shareholders | 10,244 | 5,599 | | Basic Earnings Per Share (RMB) | 0.010 | 0.006 | Consolidated Statement of Financial Position As of March 31, 2023, total assets less current liabilities were RMB 2,664,462 thousand, with net assets of RMB 2,343,283 thousand, reflecting adjustments in asset structure with increased non-current assets and decreased current assets and liabilities Key Consolidated Statement of Financial Position Data | Metric | March 31, 2023 (RMB Thousand) | December 31, 2022 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,759,071 | 1,669,235 | | Current Assets | 1,756,028 | 1,902,042 | | Current Liabilities | 850,637 | 940,726 | | Net Current Assets | 905,391 | 961,316 | | Total Assets Less Current Liabilities | 2,664,462 | 2,630,551 | | Net Assets | 2,343,283 | 2,323,107 | | Total Equity Attributable to Shareholders | 2,084,803 | 2,071,396 | Business Operations and Financial Review This section reviews the company's Q1 2023 business performance, including segment-specific operational highlights, strategic outlook, and financial structure analysis Performance Summary Q1 2023 saw significant growth in operating revenue and profit attributable to shareholders, driven by the meat product business's operational transformation, key client development, rising chicken prices, and successful food business channel strategies - Revenue and profit significantly improved, primarily due to the successful transformation of the meat product business operating model, continuous development of key accounts and refined processing, and rising chicken prices; the food business's clear and effective channel strategy also drove steady profit growth[32] Food Business The food business achieved 8.7% revenue growth and 14.4% gross profit growth in Q1, driven by increased direct client investment and C-end retail channel promotion for domestic sales, and 19.8% export revenue growth with 60.8% gross profit growth due to RMB depreciation, R&D, and efficiency gains Key Financial Indicators for Food Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 8.7 | | Gross Profit | 14.4 | | Export Food Revenue | 19.8 | | Export Gross Profit | 60.8 | - Domestic food sales team increased resource allocation to direct clients, collaborated closely with strategic clients (e.g., large membership stores, convenience store chains, restaurant chains), and focused resources on promoting family-sized products across e-commerce platforms, community group buying, and chain supermarkets for C-end retail channels[32] - Export business benefited from RMB depreciation, continuous R&D innovation, optimized product structure, and improved production efficiency, overcoming severe inflation in Japan and low-price competition from Thailand's exports to Japan[32] Feed Business The feed business saw 9.5% revenue growth in Q1 but a 21.9% gross profit decrease due to rising raw material prices; it responded to a sluggish hog market and farming losses by integrating functions, diversifying raw materials, and developing poultry and ruminant feed markets to mitigate risks Key Financial Indicators for Feed Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 9.5 | | Gross Profit | -21.9 | - The market faces a severe situation with an oversupply of domestic live hogs, sluggish pork and live hog prices, and persistently high feed costs for hog farming leading to continuous losses[33] - Response strategies include accelerating mid-office function integration, strengthening cross-functional collaboration in product R&D, raw material procurement, production processes, quality control, and technical services, and promoting diversified raw material usage to reduce feed costs[33] - Actively investing resources to strengthen R&D and market development for poultry and ruminant feeds, exploring markets beyond hog feed, and diversifying product categories to mitigate market risks[33] Meat Product Business The meat product business achieved 30.2% revenue growth and 72.2% gross profit growth in Q1, driven by rising chicken prices due to reduced chick and broiler supply, and operational model adjustments focusing on refined processing, differentiated products, optimized sales channels, and enhanced brand value Key Financial Indicators for Meat Product Business | Metric | Year-on-Year Growth (%) | | :--- | :--- | | Operating Revenue | 30.2 | | Gross Profit | 72.2 | - Chicken prices increased by approximately 15% year-on-year, primarily due to low chick prices at the end of last year leading some parent stock farms to forced molting, resulting in reduced chick and broiler supply in Q1 this year[35] - Operational model adjustments include focusing on refined processing and differentiated meat products, increasing output value through close collaboration with key clients; actively developing quality-focused clients such as fresh food chains and membership stores, phasing out price-sensitive clients, and optimizing sales channels[35] - Continuously improving the performance of contract feed, reducing breeding and broiler farming risks, and enhancing the relative competitiveness of the industrial chain[35] Outlook and Strategy For Q2, the company will lead with food for growth, stabilize feed sales through diversification, improve meat product operations by focusing on end-market development and cash flow, and advance group-wide scaling, diversification, and value-added strategies with digital transformation and supply chain optimization; a new Anhui Bengbu plant is expected to launch in H2, strengthening the Yangtze River Delta market and upgrading the food business - The group's strategy involves a coordinated approach of "food scaling, feed diversification, and meat product value-adding," steadily advancing digital transformation, optimizing supply chain management, improving operational efficiency, and enhancing the group's overall industrial competitiveness and anti-cyclical capabilities[35] - Construction of new food processing, broiler slaughter, and feed processing plants in Bengbu, Anhui Province, is progressing smoothly, with phased commissioning expected in the second half of this year, which will help consolidate and expand the group's market position in the Yangtze River Delta and elevate the food business strategy[36] - External uncertainties include the significant impact of the Russia-Ukraine war on the global economy and the shock caused by US dollar interest rate hikes to the global financial system[35] Financial Structure As of March 31, 2023, the group maintained a healthy financial structure with net assets of approximately RMB 2,343,283 thousand, cash and cash equivalents representing 12.9% of total assets, a slightly increased current ratio of 2.06x, and an interest-bearing debt-to-equity ratio of 17.6% Key Financial Structure Indicators | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Net Assets (RMB Thousand) | 2,343,283 | 2,323,107 | | Cash and Cash Equivalents as % of Total Assets | 12.9 | - | | Current Ratio (x) | 2.06 | 2.02 | | Interest-Bearing Debt to Equity Ratio (%) | 17.6 | 16.2 | Other Information This section provides additional information on securities transactions, audit committee review, board composition, compliance with listing rules, and details regarding the company's parent entity Purchase, Sale or Redemption of Securities For the three months ended March 31, 2023, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities - The company and its subsidiaries did not engage in any purchase, redemption, or sale of listed securities during the reporting period[1] Audit Committee The company's Audit Committee has reviewed the group's unaudited consolidated financial statements for the three months ended March 31, 2023 - The Audit Committee has reviewed the group's unaudited consolidated financial statements for the three months ended March 31, 2023[2] Board Composition As of the announcement date, the Board of Directors comprises two executive directors (including the Chairman), five non-executive directors, and four independent non-executive directors - The Board of Directors includes 2 executive directors (Mr. Wei Chun Hsien as Chairman), 5 non-executive directors, and 4 independent non-executive directors[12] Compliance with Listing Rules Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited disclaim responsibility for this announcement, which aims to timely disclose financial information to shareholders and potential investors in compliance with Listing Rule 13.09 - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement[4] - This announcement aims to timely disclose the company's financial information to its shareholders and potential investors in compliance with Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[10] Parent Company Information The company is a subsidiary of DaChan Great Wall Enterprise Co., Ltd., which indirectly holds approximately 52.04% of its issued shares; the group's operating results are consolidated into DaChan Great Wall's financial statements, which are prepared and published quarterly per Taiwan's securities regulations - The company is a subsidiary of DaChan Great Wall Enterprise Co., Ltd. (whose shares are listed on the Taiwan Stock Exchange), with DaChan Great Wall indirectly holding approximately 52.04% of the company's issued shares[37] - The group's operating results are consolidated into DaChan Great Wall Enterprise's financial statements, and DaChan Great Wall is required to prepare and publish consolidated quarterly financial reports and its quarterly operating results on its website in accordance with Taiwan's Securities and Exchange Act and Taiwan Stock Exchange listing rules[37]